I keep looking at the US$1.5 trillion increase in the US national debt in the
last 12 months, due to the Congress deficit-spending and the Federal Reserve
creating the monstrous amounts of money and credit so that somebody could end
up buying all that Treasury debt, and then I keep looking at the measly 100
million private-sector jobs that can show a profit by their labors, and thus
the only ones who can pay taxes out of profits, instead of being government
jobs or taxpayers-paid jobs that can't and don't.
So I keep punching those numbers into my calculator and I must keep screwing it
all up because it comes out to the government spending $15,000 for everybody
that has a profit-making job! And this was all before the "economic stimulus"
package passed by Congress! Yikes!
At least when I am drunk, I can understand why I don't understand
how this could work out, but I am stone-cold sober right now and I STILL don't
understand how in the hell all of those people can each possibly MAKE another
$15,000 in profit for themselves and their employers! This is insane! This is
beyond insane!
At this point, I am raving and hysterical, and although I am screaming at the
top of my lungs in outrage, I am actually saying, "And it goes up to $50,000
each in the next year! We're soooOOooo freaking dooOOOooomed!"
Actually, it reminds me of that time when I was desperately experimenting with
my medications and various intoxicants in varying commingled amounts to try and
stop being in Mogambo Panic Mode (MPM) about what the Federal Reserve and the
Congress are doing to us, and then maybe I could get some sleep, blissful,
peaceful sleep, or at least stop my trigger finger from shaking so damned much.
Unfortunately all of the permutations of dosage eventually had the same two
results; for one, I get weirder and weirder, and for two, I am still outraged
at the stupidity and despicability of the Federal Reserve in creating so much
money and credit so that the traitorous, corrupt Congress could spend so much
money to change the economy into a bloated, misshapen, cancerous,
government-centric piece of corrupt socialist trash, bit by bit, year after
year, and now (in case you are new around here and haven't heard me bellowing
that we're freaking doomed), the federal government is going to deficit-spend
upwards of $2 trillion next year! On top of the $3 trillion it is already
budgeted to spend!
Spontaneously, I shout, "You should be buying gold, silver and oil with both of
your greedy, grasping hands because we are - in case you ain't heard - freaking
doomed!" just to bring everybody up to speed.
Well, nobody is impressed with my rude outburst, and TheBurningPlatform.com
says, "some perspective is in order. If we use $2.5 trillion as the estimated
deficit that means we're adding $6.85 billion per day to the National Debt"
which, when I divide by the 100 million private-sector workers in the country,
comes to each one of them carrying another $65.86 a day in debt! Unbelievable!
Of course, this sets me off again, but before I can work myself into a Real
Screaming Frenzy (RSF), they note that things have been worse, as, "Government
debt as a percentage of GDP was 122% during World War II, versus only 78%
today" which kind of calmed me down since we obviously survived that ordeal.
So I was just about to use that happy factoid as a handy excuse to celebrate by
ducking out early and maybe grabbing a burger and brew, when they ominously go
on "When government debt reaches 110% of GDP next year, will we be in better or
worse position as a nation than we were in 1945 as the only remaining power in
the world?"
There are many things that scare me in this world, but none is more horrendous
than the short extrapolation that came out a few years after government debt
went from 78% of GDP in one year to 100% the next.
Fortunately, nothing is more soothing than the security of gold, time-tested
for over 4,000 years and going strong!
Whee! This investing stuff is easy!
Richard Daughty is general partner and COO for Smith Consultant Group,
serving the financial and medical communities, and the editor of The Mogambo
Guru economic newsletter - an avocational exercise to heap disrespect on those
who desperately deserve it.
(Republished with permission from
The Daily Reckoning. Copyright 2009, The Daily Reckoning.)
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